PHMA North Zone Expresses Concern: Deep Anxiety Over SBP Raising Policy Rate to 12 Percent

Faisalabad: October 26 (DIGITAL ITLA) — Mian Farrukh Iqbal, Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA) North Zone, has expressed grave concern over the State Bank of Pakistan's (SBP) decision to increase the policy rate by 50 basis points, bringing it to 12 percent. He warned that this step would severely impact Pakistan's textile and hosiery export sector.

Highlighting regional interest rate disparities, Mian Farrukh Iqbal noted that Pakistan's policy rate of 12 percent is significantly higher than India's 5.5 percent, Sri Lanka's 8.75 percent, and Bangladesh's 9.5 percent. He emphasized that this huge gap diminishes the competitive edge of Pakistani exporters in international markets already struggling with high energy costs and heavy taxation.

He urged the government and SBP to review the monetary policy, lower cost of doing business, and introduce subsidized financing schemes for exporters to protect national exports, sustain employment, and ensure foreign exchange inflows.